Gold Fields Limited · JSE:GFI
Gold Fields — Investor Day (November 2009)
15 slides from Gold Fields's investor day presentation, Nov 3, 2009
Slide 1: Financial Strategy
Financial Strategy Analyst Day 3 November 2009 Paul Schmidt Chief Financial Officer
Slide 2: Financial Strategy Key Principles
Gold Fields Limited 2009 Analyst Day 3 November 2009 221 FINANCIAL STRATEGY Key Principles • We do not hedge gold. • Opportunistic hedging of currencies, other commodities, to support high capex phases & secure cash flows. • Funding strategy: Internal resources Structured debt Equity (Cash flows) (M
Slide 3: Balance Sheet
Gold Fields Limited 2009 Analyst Day 3 November 2009 222 FINANCIAL STRATEGY Balance Sheet • Comfortable debt levels Q1 Q2 F2010 F2009 • Net Debt/EBITDA 0.58:1 Rm Rm • Internal target of no more Loans – long term 5,010 10,016 than 1xEBITDA Loans – short term 3,962 392 • Covenants 2.5xEBITDA • Improve
Slide 4: Financial Flexibility: Debt Maturity Profile
Gold Fields Limited 2009 Analyst Day 3 November 2009 223 FINANCIAL STRATEGY Financial Flexibility Debt Maturity Profile (R'm) as at December 2008 6,000 4,970 5,000 4,000 3,524 3,410 3,410 Utilised R 10,408 3,000 2,487 Facilities R 13,290 2,000 1,551 777 958 958 1,000 688 777 188 - Q3F2009 Q4F2009 F2
Slide 5: Financial Flexibility: Reduced Debt & Improved Flexibility
Gold Fields Limited 2009 Analyst Day 3 November 2009 224 FINANCIAL STRATEGY Financial Flexibility Rand US$ Rand Denominated Denominated Equivalent* Rm $m Rm Uncommitted 922 - 850 Facilities Committed 2,500 349 5,072 Facilities Total credit 3,422 349 5,994 *Converted at US$1: R7.37 REDUCED DEBT & IMP
Slide 6: Capex Profile: Declining Profile
Gold Fields Limited 2009 Analyst Day 3 November 2009 225 FINANCIAL STRATEGY Capex Profile R million F2010 F2011 F2012 F2013 F2014 R8.95/$ R8.02/$ R9.17/$ R9.17/$ R9.17/$ Sustaining Capex 1,450 1,776 1,599 1,237 1,151 ORD 1,653 1,569 1,472 1,337 1,170 South Africa Region Project Capex 1,824 1,939 2,1
Slide 7: Capex Profile: Can Be Funded From Internal Sources
Gold Fields Limited 2009 Analyst Day 3 November 2009 226 FINANCIAL STRATEGY Capex Profile R million F2010 F2011 F2012 F2013 F2014 R8.95/$ R8.02/$ R9.17/$ R9.17/$ R9.17/$ Sustaining Capex 642 564 742 1,049 963 Exploration 295 294 323 323 291 Australasia Region Project Capex 91 254 277 - - Total 1,028
Slide 8: Major Capex: Securing the Future
Gold Fields Limited 2009 Analyst Day 3 November 2009 227 FINANCIAL STRATEGY Major Capex R million F2010 F2011 F2012 F2013 F2014 R8.95/$ R8.02/$ R9.17/$ R9.17/$ R9.17/$ Tarkwa Waste Stripping 850 986 1,368 1,046 987 Tarkwa fleet replacement 255 271 64 479 307 West Africa Tarkwa additional fleet - 263
Slide 9: Cost Management: Input Costs Normalising
Gold Fields Limited 2009 Analyst Day 3 November 2009 228 FINANCIAL STRATEGY Cost Management 195.00 Key Global Commodities Index Cyanide Ave Price Index 175.00 Diesel Ave Price Index STEEL INDEX 155.00 Ammonia Index (Explosives) 135.00 115.00 95.00 75.00 55.00 INPUT COSTS NORMALISING Commodity prices
Slide 10: Cost Management Strategic Principles
Gold Fields Limited 2009 Analyst Day 3 November 2009 229 Cost Management FINANCIAL STRATEGY Strategic Principles • Total cost of ownership focus = Optimise total cost of material supply over life of asset/equipment • Aligning vendor incentives through partnerships and collaboration • Improved standa
Slide 11: Notional Cash Expenditure (NCE)
Gold Fields Limited 2009 Analyst Day 3 November 2009 230 Notional Cash Expenditure FINANCIAL STRATEGY (NCE) • Key strategic objective • Focus on free cash flow • So what is NCE? • NCE = operating costs (including general and administration costs) plus capital expenditure, which includes brownfields
Slide 12: NCE Competitive Against Our Peers
Gold Fields Limited 2009 Analyst Day 3 November 2009 231 Notional Cash Expenditure FINANCIAL STRATEGY (NCE) NCE FOR 12 MONTHS TO JUNE 2009 1000 932 934 900 821 791 800 764 685 700 600 US$/oz $/oz 500 400 300 200 100 0 AngloGold Ashanti Gold Fields Barrick Gold Peer average Newmont Harmony Source: Co
Slide 13: Impact of Rand
Gold Fields Limited 2009 Analyst Day 3 November 2009 232 FINANCIAL STRATEGY Impact of Rand Impact of Rand on Group operating profit Operating Margin Capex US$/ZAR $/oz Profit ( %) (Rm) (Rm) Q1F2010 7.82 956 2,787 38 1,740 7.00 956 2,204 33 1,668 8.00 956 2,915 38 1,757 9.00 956 3,625 43 1,845 10.00
Slide 14: Dividend Policy
Gold Fields Limited 2009 Analyst Day 3 November 2009 233 FINANCIAL STRATEGY Dividend Policy Dividend payout ratio 300% R 3.00 Payout ratio percentage 250% R 2.50 200% R 2.00 EPS 150% R 1.50 Normalised EPS 100% R 1.00 Dividend per share 50% R 0.50 0% R- F2003 F2004 F2005 F2006 F2007 F2008 F2009 F2009
Slide 15: Conclusions: Strong Balance Sheet
Gold Fields Limited 2009 Analyst Day 3 November 2009 234 FINANCIAL STRATEGY Conclusions Well Capitalised No Toxic Financial Instruments Financial Flexibility Focused on cash generation History of superior dividend payments STRONG BALANCE SHEET To conclude, Gold Fields has a strong balance sheet and